A Bay Area bank holding company has reached a deal to buy Santa Barbara Bank & Trust.
UnionBanCal is paying $46 a share to acquire Pacific Capitol Bancorp, the parent of the Santa Barbara based local bank chain, which puts the value of the transaction at around $1.5 billion dollars.
UnionBanCal is the parent of Union Bank, which has more than 400 branch on the West Coast, Texas, and New York. The company has nearly 90 billion dollars in assets.
Santa Barbara Bank and Trust has 47 branches in eight California counties.
The deal will lead to the Santa Barbara Bank & Trust braches being converted to Union Bank branches in 2013.
The local bank has had rough times financially in recent years, and Union Bank has been talked about as a potential suitor for more than two years. Bank officials tell KCLU they won’t know for some time still if they will close branches, or lay off employees as a result of the merger.